Flats vs Maisonet Vs house ?

vikashkumar23

Hi,

I hope a lot of people have answered to this question.

I am interested in buying a property as buy to let in Midlands especially Birmingham or Coventry.

For 100k I see the flats are common and can get one bed apartment. But again I see the depreciation of the price is too high. Lot of properties are sold for 20% less than it was bought in the year 2000 to 2015 or 16.

Maisonets are 120k rage and again service fee and lease fee applies.

Hours are very rare in 140 to 150k range and even if you get one , a lot of refurb is required. 

I see 2 bed flat/house/maisonet charges same rental amount which is £700 to £900.

Why the flats/maisonet prices slashed a lot in 2023/2024?

Is it even a good year to buy a property ?

10 years down the line, do you think the flats/maisonet price will increase ? Obviously we can't judge but scare after see the price fall in last 2 years. 

Is it still good to invest in flats/maisonet in 2024?

Elliott.T123

The rental rates are similar assuming floor space is similar because the different type of property doesn't come with the same negatives for a renter vs an owner (although I would expect houses or maisonettes with a garden to be more than a flat without).

If you own a freehold detached house you have the peak of the property tree in most peoples eyes. You don't have to worry about service charges, noisy neighbours directly above/below/to the side.

No one knows if it is a good or bad year with certainty, who knows what is going to happen in the future. Maybe Labour win the next election and decide they want to push prices up (I know I know this is make believe land). They ban all new house building across the country and limit the supply. Suddenly prices shoot up.
Equally maybe Russia (or anyone else) decides to kick off a world war, the economy collapses and there are suddenly a glut of empty houses, prices have crashed. 

The big reason for drops in flats over the last few years was people being stuck inside during lockdown and realising:
1. I want more space if I am stuck inside / working from home
2. I want a private garden I can use

Albermarle

Elliott.T123 said:

The rental rates are similar assuming floor space is similar because the different type of property doesn't come with the same negatives for a renter vs an owner (although I would expect houses or maisonettes with a garden to be more than a flat without).

If you own a freehold detached house you have the peak of the property tree in most peoples eyes. You don't have to worry about service charges, noisy neighbours directly above/below/to the side.

No one knows if it is a good or bad year with certainty, who knows what is going to happen in the future. Maybe Labour win the next election and decide they want to push prices up (I know I know this is make believe land). They ban all new house building across the country and limit the supply. Suddenly prices shoot up.
Equally maybe Russia (or anyone else) decides to kick off a world war, the economy collapses and there are suddenly a glut of empty houses, prices have crashed. 

The big reason for drops in flats over the last few years was people being stuck inside during lockdown and realising:
1. I want more space if I am stuck inside / working from home
2. I want a private garden I can use

If you are a regular reader of this forum I think you can add a third point.
3. All the potential hassles with leases, as opposed to freehold.

DullGreyGuy

Elliott.T123 said:

1. I want more space if I am stuck inside / working from home

Wanting more space surely pushes you towards flats over houses? For a like for like purchase price your Sq footage will typically be more in a flat than a house and none of it is taken up with stair cases, typically less pace in landings/hallways etc. 

Fair point on outside space. 

Elliott.T123

DullGreyGuy said:

Elliott.T123 said:

1. I want more space if I am stuck inside / working from home

Wanting more space surely pushes you towards flats over houses? For a like for like purchase price your Sq footage will typically be more in a flat than a house and none of it is taken up with stair cases, typically less pace in landings/hallways etc. 

Fair point on outside space. 

On a price per sq foot basis maybe but I know a lot of people who pre covid were living as a single person in a flat with no plans to upside. Post covid they decided they wanted more space so moved into 3 bed houses. Yes they paid more but they still had more space.

Equally I know people who pre covid were planning on buying a flat soon, however with lockdown decided to wait a few extra years and save more to buy a 2-3 bed house rather than a 1 bed flat.

DullGreyGuy

Elliott.T123 said:

DullGreyGuy said:

Elliott.T123 said:

1. I want more space if I am stuck inside / working from home

Wanting more space surely pushes you towards flats over houses? For a like for like purchase price your Sq footage will typically be more in a flat than a house and none of it is taken up with stair cases, typically less pace in landings/hallways etc. 

Fair point on outside space. 

On a price per sq foot basis maybe but I know a lot of people who pre covid were living as a single person in a flat with no plans to upside. Post covid they decided they wanted more space so moved into 3 bed houses. Yes they paid more but they still had more space.

Equally I know people who pre covid were planning on buying a flat soon, however with lockdown decided to wait a few extra years and save more to buy a 2-3 bed house rather than a 1 bed flat.

Ultimately you'd need to speak to them to determine their motivation for a house... size would be a bad reason as again with their increased budget a 3 bed flat typically will have more internal space than a 3 bed house. There are other reasons like outdoor space, not wanting neighbours above any more or potentially lack of options.

Cheapest 3 bed in our area is 85m2 and £515k, cheapest 3 bed house just sold for £650k and was 72m2. Looking at two 3 beds in the same development, one a house one a flat both priced at £1m the flat has an extra 25m2 and doesn't have 3 sets of stairs/landing/halls taking up space

4 beds is more complex as the only flat for sale at the moment is a "penthouse" so hideously expensive but also has extensive river views and multiple roof terraces.